A Solid, Profitable Home Builder With 20% Upside

NVR has a reputation for shareholder-friendliness and lean operations—twin pillars for the millennial housing boom.

Home builders have been on wobbly ground since their stocks peaked a year ago, and the knocks against them have grown loud and familiar: Benchmark interest rates are ticking up after a three-decade slide. Many home builders have poor balance sheets and make speculative land purchases. The market has already rewarded some of the riskiest names in the post-recession bounce, as expectations and valuations were reaching the roof.